AUSTRALIA’S energy and resources exports are expected to continue ramping up over the next few years, but the party will not last for ever, according to the recently released March 2018 Resources and Energy Quarterly.
In the report’s foreword, Department of Industry, Innovation and Science chief economist Mark Cully wrote that the value of resource and energy exports from Australia are slated to be their highest level on record at $230bn over the current financial year, the chief economist wrote in the report’s forward.
“Beyond the short term, our view remains largely unchanged,” the forward reads.
“In the annual update of our five year forecasts, we project export earnings to decline slightly from current levels, before levelling out at about $212bn to $216bn from 2019-20 onwards. In total, the next five years will deliver more than $1 trillion in resources and energy export income.”
And, by the end of the decade, the ramp-up in export volumes is expected to have run its course, with the last of Australia’s LNG projects due for completion by the end of the year, and iron ore export volumes expected to slow down from 2018-19.
“The story is similar for other key resource and energy export commodities including coal, gold and several base metals,” Mr Cully wrote.
“In this sense, 2020 will mark the end of the remarkable growth phase of the Australian resources and energy sector.”
Resources minister Matt Canavan said the figures in the report demonstrate the resources sector is going from strength to strength.
“Mining is crucial not only to Australia’s economy but also to growth and prosperity across our whole region,” Mr Canavan said.
“We are already the largest exporter of coal, bauxite and iron ore, and we could be the biggest LNG exporter as well by 2019.”